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please can someone help me with this question?? when hedging with forward/futures do they participate in the gains resulting from favourable movements? In hedging with
please can someone help me with this question?? when hedging with forward/futures do they participate in the gains resulting from
In hedging with forwards or futures, the cost of hedging is zero, but the investor will not be able to participate in the gains resulting from favorable movements in the asset price. However, in hedging with put options, there is a cost associated with hedging, but the investor would be able to participate in the gains resulting from favorable movements in the asset price. A. True B. False NEED HELP favourable movements?
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